Asia markets higher; exporters lead Tokyo

ChrisOliver

ShriNavaratnam

HONG KONG (MarketWatch) -- Asian shares ended mostly higher Thursday as investors concluded that tensions on the Korean peninsula and other matters that have weighed on the region’s markets have been priced in already.

The mood was also helped by upbeat expectations for a solid start to the U.S. holiday-shopping season, which unofficially kicks off on Friday.

Export-related shares were higher in Tokyo, helped by a brighter U.S. spending outlook for the holiday season and the Japanese yen’s softening against the dollar.

Japan’s Nikkei Stock Average (NI225) advanced 0.5%, Australia’s S&P/ASX 200 was up 0.2% and South Korea’s Kospi ended up 0.1%.

In Seoul, market action was muted by concern about continuing sovereign-debt issues in Europe and further tightening moves in China. While tensions on the Korean peninsula have eased after Tuesday’s North Korean artillery barrage on a South Korean island, investors remained cautious.

“The market is searching for a direction now,” said Kim Seung-han at HI Investment & Securities.

Tech shares were mostly lower, with Samsung Electronics off 0.7% and Hynix Semiconductor down 2.1%.

Exporter shares led the Tokyo market higher on the back of the improved U.S. consumer outlook and as the yen retreated versus the U.S. dollar.

Mitsui O.S.K. Lines gained 1.4% after the company said Wednesday it reached a 25-year contract with Brazil’s Vale SA, the world’s largest iron- ore producer by output, to ship iron ore to China.

Sumitomo Electric Industries (5802)
SMTOY, +2.29%
was up 2% and SWCC Showa Holdings (5805) surged 22% on a Nikkei report that the makers of electric wires will each begin to mass produce energy-saving superconducting wire next year for use in smart power grids and car motors.

In Sydney, materials and financials stocks led broad-based gains as investors were encouraged by Wall Street’s strong showing.

Telstra
TTRAF, -1.48%
(TLS) surged 3.6% after the Australian government reached a deal with independent senators that should allow it to pass its National Broadband Network legislation. That would clear the way for Telstra to announce capital-management plans for the 11 billion Australian dollars (US$10.79 billion) in NBN compensation it’s due to receive from the government.

In Hong Kong, exporters led Thursday’s gains because of the upbeat outlook for U.S. consumer spending.

In foreign-exchange markets, the euro was lower as continued concern over debt problems in the euro-zone periphery weighed.

The single currency was recently fetching $1.3304 against $1.3327 late Wednesday in New York. It was at 111.32 against the yen, compared with 111.43 yen, while the U.S. dollar was at 83.64 yen compared with 83.62 yen, after trading at a weaker level earlier in the Asian trading day.

Spot gold was at $1,370 a troy ounce, down $1.90 from the New York close.

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